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Indian Firm Chalo Garners $40 Million Funding; Acquires Amazon-Backed Aggregator Shuttl

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Chalo, an Indian firm that is digitising bus journeys and recently garnered $40 million in funding, said on Tuesday that it has acquired Amazon-backed app-based office commute bus aggregator Shuttl in an all-cash deal.

Mohit Dubey, the founder and CEO of Chalo, said the acquisition of Shuttl, which runs thousands of buses aimed at working professionals, will help his company expand across the country, including metro cities, broaden its technology and product offerings, and accelerate its international expansion efforts.

Dubey said, “Shuttl and Chalo, these are the firms that are positioned to become the largest mobility firms in the world. I wish the pandemic had not happened, but it has allowed the two companies with a similar focus to come together”.

The financial specifics of the sale were not disclosed, but Dubey said Shuttl co-founder and CEO Amit Singh has consented to continue his adventure. Shuttl's branding would continue to be used by Chalo, he said.

Singh said, “We started out to take the pain away from daily commuters. In the process we ended up building a category, and inspiring others from different parts of the world to do the same. It’s a bittersweet moment for us. We believe the team and legacy of Shuttl will thrive equally well in the new set-up”.

It's a bittersweet day for Shuttl investors as well. To confront the epidemic, the firm had been unable to acquire a fresh round of funding and had reduced its employees. For months, rumors circulated that Shuttl was closing its doors.

According to data intelligence platform Tracxn, Shuttl has raised over $97 million in a succession of financing stock and loan transactions. Sequoia Capital India, Lightspeed Venture Partners, Toyota, Amazon and Times Internet are among the company's investors.

Shuttl's entire existing team, including numerous important executives who have been with the company since the beginning, will remain in their positions, according to Chalo.

Dubey stated that he had been in contact with Shuttl's Singh for several years, but the two just started talking about a deal two months ago.

India's $20 billion bus business, which is nearly twice the size of taxis, is at stake. Bus commutes are more accessible to the general public; however there are still only roughly three buses for every 10,000 people in India.